Japan Jan, P Nikkei Manufacturing PMI 50.0;...>

JAPAN: Japan Jan, P Nikkei Manufacturing PMI 50.0; Dec 52.6

- The survey highlighted:

- Exports decline at strongest pace in two-and-a half years

- Production scaled back for first time since July 2016, while confidence lowest

in over six years.

- Compiler IHS Markit wrote "preliminary PMI data for January bodes ill for

Japan's manufacturing sector, indicating the end of a near two-and-a half year

growth run as the index dropped to 50.0. The underlying picture will raise

concern given renewed reductions were seen in new orders and output. Further

signs that the downturn in the global trade cycle could yet worsen were also

signalled, with new export orders falling at the sharpest rate since July 2016.

The widely-anticipated rebound in Q4 should not distract from the bigger

picture. Domestic economic weakness compounded with slowing global growth

coincided with the lowest level of business confidence for over six years."